What is the Maturity Amount of the Super Income Plan?
- Posted on: 18 January 2023
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- 5 min read
If an investor with a Super Income Plan lives to the policy's maturity, they will get 5 times the annualised premium. The nominee or beneficiary will get the Death Benefit if the insurance holder passes away. For a nominal fee, additional coverages can be added to enhance the Super Income Plan.
A Super Income Plan (SIP) is designed to cater to an individual's need for insurance security and long-term investment goals. This plan can give you financial security, stability and control. A person is eligible to start a Super Income Plan from the age of 25. When individuals turn 50 years old, they will no longer qualify for the policy.
A Shriram Life Super Income Plan has attractive features like life coverage, guaranteed monthly income, Maturity Sum Assured, a wide range of premium payment terms and additional protection through rider covers. Let's look at how a Super Income Plan works to understand all the benefits available with it.
How does a Super Income Plan work?
When investing in a Super Income Plan, understanding how the policy works can help an investor customise it according to their needs. The first step would be to decide when the monthly income should start. This will give the investor an estimate of how long they have to pay the premium. The age at which the investor wants to retire is an excellent example of a benchmark for deciding this tenure.
The next step would be deciding how much you can afford to pay in a year towards the policy. By applying for a Shriram Life Super Income Plan, an investor will get help from our representatives. They will help calculate the monthly benefits that can be received and the maturity amount.
After completing the payment of all the premiums, the income will be paid to the policy holder every month. They will receive a lump sum on the maturity date on surviving the policy term. In the case of the policy holder's demise, the nominee or beneficiary will receive the Death Benefits.
How is the Maturity Value of a Super Income Plan Calculated?
Let’s assume that a policy holder survives till the maturity of the Super Income Plan. In this case, they can avail the Maturity Benefit. Provided the individual paid all the premiums required, " Maturity Sum Assured" will be given to them. The Guaranteed Maturity Sum Assured is calculated by multiplying the total premiums paid by the guaranteed Maturity Sum Assured.
For example, Mr. Ashok who is 30 years old, pays an annual premium of Rs. 60,000 for a tenure of 10 years. The maturity benefit will be Rs. 3,00,000. After calculating the Super Income Benefit, the total benefit he can receive through the Super Income Plan is Rs. 16,14,720.
The Maturity Benefit value can also be calculated as 5 times the annualised premium. After the maturity benefit is paid to the policy holder, the Super Income Plan is terminated and cannot be renewed.
What are the Additional Features Available with the Super Income Plan?
Add-ons or rider covers can be purchased with a Super Income Plan to enhance the policy's benefits. Riders are optional terms added to your base insurance, generally at an extra fee. Simply defined, a rider offers more protection and coverage against hazards. Insurance riders are cost-effective additions to a life insurance policy that an investor can select. Here are some riders to consider getting with a Shriram Life Super Income Plan:
Accident Benefit Rider
- In case of death or total and permanent disability due to an accident during the rider term, we will pay 100% of the rider sum assured.
- If the life assured becomes totally and permanently disabled in an accident. In this case, we will waive all future premiums under the policy.
- The benefit under this rider is applicable only once during the rider term.
Shriram Critical Illness Plus Rider
- Suppose an individual is diagnosed with any of the 24 specified Critical Illnesses. In this case, we will pay 100% of the rider Sum Assured on survival of 30 days following the date of first confirmed diagnosis.
- This rider also gives an investor an upside of increments in their rider Sum Assured through Loyalty Additions.
Family Income Benefit Rider
- In the event of accidental death or if the life assured becomes totally and permanently disabled due to an accident within the rider term, 1% of the rider sum assured is payable every month.
- This sum will be paid immediately from the end of the month of the accident for a guaranteed period of 10 years or till the end of the rider term, whichever is higher.
Extra Insurance Cover Rider
- In case of the unfortunate demise of the life assured during the rider cover term, the sum assured under rider will be paid to the nominee.
Eligibility and Steps to Apply for a Super Income Plan
An individual applying for a Super Income Plan has to be at least 25 years of age. The age limit until which the policy can continue is 75 years. After an individual turns 75 years old, they will not be able to avail the policy. The premium payment term can range from 10 to 25 years.
The premium payment term and age at entry should not exceed 65 years. The minimum annualised premium is Rs. 30,000. The premiums can be paid yearly, half-yearly, quarterly or monthly. The sum assured as the payback is 10 times the annualised premium.
Here are the steps to apply for a Super Income Plan:
Step 1: Apply for a Super Income Plan through the Shriram Life website. An agent will connect with the customer on call.
Step 2: The agent will explain the policy to the customer after verifying eligibility.
Step 3: The proposal filing will be done over a recorded call.
Step 4: E-Nach (Electronic National Automated Clearing House) registration will be done and then payment will be requested.
Step 5: The policy will be issued after checking the KYC document.
Should you Invest in a Super Income Plan?
The maturity benefit of the Super Income Plan makes it an attractive investment option, especially while planning future financial goals after retirement. With a Super Income Plan, you will get a monthly income that will provide financial stability later in life. The life insurance feature of the Super Income Plan will also protect you from unforeseen circumstances.
Invest in a Shriram Life Super Income Plan today to get some of the best benefits to build a brighter future. The Super Income Plan allows an investor to select from a range of premium payment tenures. Visit the Shriram Life website to learn more about the policy.
- What is the maturity benefit of a Super Income Plan?
Suppose a policy holder survives till the maturity of the Super Income Plan. In this case, they are eligible to receive 5 times the annualised premium.
- How can I close my Shriram Life Super Income Plan?
It is simple to cancel a Shriram Life Super Income Plan, but it is discouraged because a penalty will be assessed. An individual can always take a loan against the policy if emergency funds are needed.
- Does the Super Income Plan have tax benefits?
Yes, an investor can claim tax deductions for the Super Income Plan under Section 80C of the Income Tax Act, 1961.
- With a Super Income Plan, an investor will receive 5 times the annualised premium if they survive till the policy's maturity.
- In the case of the policy holder's demise, the nominee or beneficiary will receive the Death Benefit.
- Additional coverages can be purchased for a nominal rate to enhance the Super Income Plan.
- The premiums for the Super Income Plan can be paid yearly, half-yearly, quarterly or monthly.